Why is everyone talking about Kiva.org? November 30, 2008

My son came home from work yesterday and was going on and on about this new Entrepreneurial website called Kiva.  He thought it was genius, pure genius. (He’s 19).  He explained that it allows individuals to make loans to entrepreneurs in developing countries which they can use to start up or continue their small businesses.  I entered my car today and switched on the XM Satellite radio and there on the NPR station was an interview being played with Matt Flannery, Co-founder of Kiva.  Hmmm, coincidence or not?

Kevin along with wife, Jessica, fought against a lot of naysayers in 2005 to get his site started. Friends said it just wouldn’t work.  An attorney told him it was illegal to give money to people in third world countries and then have them mail their loan payment back. So, Kevin researched the case law and policy on this topic, but could not find anything illegal about it.  Venture capitalists did not see how anyone could make enough money on this type of deal.  Foundations would not support the idea because it did not appear to be charity but instead, a type of commerce.  Kevin and Jessica went ahead with their plans for the site.

Today, Kiva.org is one of the hottest sites on the web.  When you visit, you can look up struggling business owners around the world and see their pictures.  They receive recommendations by other Kiva uses.  You are able to read their profile and decide if their business is something you would like to support.  A tally shows how much money they need and how much they have received to date.  You can start teams among your friends/family to give as a group.  Team tallies are also displayed on the site. 

Some loaners have even gone as far as visiting the Kiva entrepreneurs they have loaned money to.  The site has been featured in every major magazine and many Senegal, Peru, or the Ukraine. For example, Justina, Ayacucho, Peru is 48 years old and married with five children. She sells potatoes from a stand in the Las Americas market, she also travels to regional fairs to sell clothing and buy grains. She is requesting a loan of $275 to buy more potatoes. As of today she has received $75.  You can see her picture on line.  She is just one of thousands of individuals affiliated with the site.  You do not get this same kind of feeling when you donate to a big charity. You just don’t.Check out the site: http://kiva.org  This is an amazing “Feel Good” site.  You’ll be talking about it, too.  Very cool!

Justine, Peruvian Potato Seller

news shows. (Where have I been?)  This site is hot because it lets a loaner feel like they are really helping a specific

person. You actually feel like you are forging a connection with someone in